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I trade equities and some options pairs spreads. Some of the recently closed positions are ALTR/XLNX from R=0.539 to 0.60(gain of 11%) and MSFT/IBM from R=0.269 to 0.3 (gain of 10%). I presently hold 18 pairs. Ex: CTX/DHI, CECO/APOL. Al

Hi all, I saw the thread active again. Here is my update... I finished the year with 24% gain doing pairs trading exclusively. This year I am up 7.4% so far with the Sharpe ratio of 5. As far as death of pairs trading, I think it is more alive than ever. When I started a couple of years...

Here is the chart:)

Hi H2O, I opened a new position yesterday at 1400: Long PPH / Short XLK. Entry ratio 3.9552. Exit 4.3. Stop loss 3.89. Will keep you posted on progress. Regards, Al

Hi seisan, Hi everybody, Thank you for your kind words. It is nice to realize that together we have created something that is of interest to so many people. The numbers of views and responses indicate that market neutral trading, pairs trading specifically, is not being overlooked by the...

Hi thetradeprofit, What these pairs have in common is high correlation over several years. This high correlation allows you to stay truly market neutral as these stocks react to the market moves the same way over a significant period of time. The correlation is much less over 30-60 days...

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Hi everybody, I am glad that pairs trading is of interest to so many people. It is impressive that this thread received more than 300 posts and over 40,000 views. My experience with pairs trading has been tough but quite profitable so far. It took me a while to find appropriate pairs to...

Carlos11, I am only affiliated with Pairstrading.com as a client. The reason I refer to the site is because I believe it is a good resource for anyone who is interested in pairs trading. When I started looking for resources related to pairs trading in September of 2002, all I could find were...

Could anyone suggest a broker with a pairs trading platform that I could use ? Al

Hi, I have to disagree with you. I discovered the site in September of 2002. By November I had a working pairs trading system. Most of the system design comes from the pairs trading manual. I agree, $200 is a hefty price, but I made it all back many times over. This is the direct link to...

Hey Bud, I use the advanced version myself. I am only able to do the S&P500 with my hardware. They have the S&P, the NAS100 and the Russell 1000. That is a lot of pairs to choose from. They also calculate RSIs and Standard Deviations, so you can look for shorter-term trades with signif...

I wrote this message on Jan 14, 2002. The S&P 500 closed at 931.66 that day. That was the highest close since Dec.02. Today we finished at 861.40. Now we can safely say that Jan14, 2002 was an important top. The reason I am pointing this out today is not to brag, but to suggest that pairs...

Hi jrweiner, I do go back to look at the pairs after I got stepped out. Some of them improve, some loose even more. Trying to analyze what would have happened if I stuck with a loosing position for a little longer is a pointless and psychologically damaging job. You have to embrace your loses...

Hi ChrisM, I have been trading for over 12 years now. I am doing pairs trading exclusively since September 2002. I use my own technical system based on price correlation analysis. I looked at the yield model as well. The price model is easier to compute and it gives you better stats ( at...

Hi Avaturk, INTC/ALTR looks good. INTC/XLNX was recommended by Pairstrading.com a couple of days ago. Kind of same thing. Earnings on Intel would be beneficial if they were bad. XLNX and Altera have a higher Beta so they would fall harder than INTC. If earnings are good you will see the...